Crypto Chaos: XRP and Bitcoin Take a Dive! 😱💸

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What to know:

  • XRP has taken a nosedive below its 200-day simple moving average, suggesting it might be auditioning for a role in a downward spiral. 🎢
  • Bitcoin, the granddaddy of digital coins, has also decided to join the pity party, dropping significantly due to a $358 million outflow from ETFs and the ever-looming specter of trade wars. 🥴
  • The core PCE data, that delightful little inflation measure, is expected to stir the pot of market sentiment and could sway the Federal Reserve’s future decisions like a leaf in the wind. 🍃

On this gloomy Friday, the crypto market resembled a scene from a tragic play, with XRP losing its footing alongside Bitcoin and other major players, all while traders anxiously awaited the Fed’s inflation measure, the core PCE. 🎭

Payments-focused XRP has dipped below the 200-day simple moving average (SMA) for the first time since April 10, signaling a potential increase in its downward momentum. Prices fell below $2.20, marking a 4.6% loss over the past 24 hours, according to TradingView. 📉

This decline came on the heels of reports suggesting a rising demand for XRP as a corporate Treasury asset. Who knew corporate treasurers had such a taste for crypto? 🍽️

Meanwhile, Bitcoin, the premier digital asset, briefly dipped below $105,000 during European trading hours, extending its overnight losses to nearly 3%. Talk about a rough morning! ☕

These losses were spurred by a $358 million net outflow from 11 spot bitcoin exchange-traded funds (ETFs) on Thursday, marking their first outflow since May 13 and the highest single-day tally since March 11, according to SoSoValue. And let’s not forget the renewed trade war fears that are casting a shadow over the market. 🌩️

Other major players like ETH, SOL, and DOGE also joined the downward trend, with smaller tokens like OP, ARB, BONK, and PEPE plummeting by over 10% each. It’s a veritable crypto bloodbath! 🩸

Focus on U.S. core PCE

Consumer prices, as measured by the personal consumption expenditure index, rose by 0.15% on a monthly basis in April, bringing the annual inflation rate down to 2.2% from 2.3% in March, according to economists surveyed by FactSet. 📊

The core PCE, the Fed’s favorite inflation measure (because who doesn’t love a good exclusion of volatile food and energy prices?), is forecasted to have risen by 0.12% monthly and 2.5% annually. 📈

Another good month for inflation could raise bets on Fed rate cuts, which would be music to the ears of BTC and other assets. 🎶

“All eyes now turn to the Core PCE data due today, which could reignite bullish sentiment if inflation shows signs of easing,” said Valentin Fournier, Lead Research Analyst at BRN, in an email. Let’s hope for some good news, shall we? 🤞

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2025-05-30 13:16